Houston Settles Lap Dance Favoritism Claim Made by Bikini Bar

HOUSTON — Paradise City, a Texas bikini bar offering topless dancing, scored a big win several weeks ago against the City of Houston, which was accused of enforcing its lap dance ban unevenly, unconstitutionally letting only a favored group of adult entertainment businesses operate as true strip clubs. Nelson Hensley, an attorney representing Paradise City, told AVN that the suit, filed in October, said that under terms of a settlement deal made last month, “my client was allowed to join the other clubs in Houston that are paying an annual fee to be allowed to operate as topless clubs.” In a suit originally filed in October at Houston federal court, Paradise City alleged that the city unlawfully permitted only a select handful of strip clubs to operate with immunity from city ordinances regarding "no touch" and "three feet" rules. The lawsuit, seeking a declaratory judgment that the agreement hinders commercial competition and other relief, such as attorneys fees, claimed that immunity stemmed from a 2013 settlement between 16 adult establishments and the city, according to Hensley, a name partner with Hensley and Krueger in Houston. "[P]laintiff is in direct competition with the clubs that are unfair beneficiaries of the exemptions included in the agreement,” the suit said. “Unless plaintiff is allowed to join the agreement with defendant, plaintiff is harmed and will continue to be significantly harmed because its competitors are not subject to enforcement of the city ordinances.” Paradise City alleged that the 2013 settlement agreement was unlawful, unfair and anticompetitive, violating due process, equal protection and antitrust laws. “The agreement permits only specifically selected clubs to offer topless lap dancing and prohibits their competitors, such as plaintiff, from offering the same services,” the suit said. “The agreement prevents fair competition in the adult entertainment market, putting plaintiff, a non-party club, at a severe competitive disadvantage. In return for the clubs’ immunity from the ordinances, the clubs annually pay the city nearly $50,000 in addition to a share of their liquor sales, the suit said. “This scheme amounts to commercial bribery and violates both state and federal law. Fundamentally, the agreement is unlawful, unfair and anticompetitive in nature. The result is that the city’s laws are selectively enforced against plaintiff, while the select clubs are simultaneously exempt from the exact same laws.” Paradise City, whose parent operator is My Entertainment LLC, describes itself as an “upscale international gentlemen’s club.” “We have taken the best parts of a night club, bikini bar, BYOB, sports bar, after hours and gentlemen’s club and combined them all under one roof,” the club’s site said. “Paradise City features over a hundred of the hottest international dancers Houston has to offer. “When the city goes to sleep, we provide the official late-night after-hours spot with visitors coming from all over the city. We are BYOB till 2 a.m. but the party does not stop ‘til after 5 a.m. every night.”